Bowman-Fed will raise rates and soon lower
2022.12.01 11:16
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Bowman-Fed will raise rates and soon lower
Budrigannews.com – Although policy may soon accelerate the pace of interest rate increases while maintaining inflation, higher peak rates may be required than expected a few months ago.
At the KBV event , the head of the Forum Strategy Bowman called: “As we reach a fairly limited level of the federal funds rate, it will become desirable for us to slow down the rate increase, as we determine how much we need to raise the target range.”
According to Bowman, remarks by Federal Reserve Chairman Jerome Powell, who on Wednesday made comments reinforcing expectations of a half-point rate hike after four subsequent 75-point increases, said that policy could reduce the pace of rate hikes during this month.
According to Bowman: “I think my expectation will be that we will get a slightly higher rate than I expected in September,” until “I see if our actions really have any effect on reducing inflation.” To ensure that inflation returns to its target on January 2, the head of the Federal Reserve System said that the Central Bank will need to keep rates at a peak “for some time.” In recent months, inflation has shown some signs of acceleration, but it is still very high.
According to the Commerce Department, on Thursday, the price index for personal expenses excluding food and energy, which, according to Powell, is a more accurate indicator of the trend towards inflation, rose 0.2% below forecasts on October 10.
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